Based on the principal-agent theory, we construct a research framework of "external environment—investment efficiency—corporate risk-taking level." Utilizing data on industry prosperity from 2019 to 2023 and combining panel data on corporate risk-taking levels in the eastern, central, and western regions of China, we employ a multi-time-point DID model for OLS regression to analyze the impact of industry prosperity on the level of corporate risk-taking under regional differences. The results indicate: (1) Companies in industries with higher prosperity tend to have higher investment efficiency and more stable revenue, leading to lower levels of corporate risk-taking; (2) Higher market freedom weakens the influence of industry prosperity on the local corporate risk-taking level; (3) The degree of market liberalization in the eastern, central, and western regions of China is gradually decreasing, making the impact of industry prosperity on the risk-taking level of companies highest in the western region, followed by the central region, and the eastern region experiencing the smallest impact.
Regional differences; Industry prosperity; Corporate risk-taking; Eastern, central, and western regions
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